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Mandatory tax deductions for all employees include the following: Multiple select question. federal income taxes state unemployment taxes Medicare taxes Social Security taxes - ✔✔federal income taxes Medicare taxes Social Security taxes Put the list in the correct processing order Position 1 of 4 determine post-tax deductions. incorrect toggle button unavailable determine post-tax deductions. - ✔✔gross pay pre tax ded fed withholding post tax An employee earns $4,000 per week and contributes $150 to their 401(k) plan and $75 to United Way. What amount of employee's wages are subject to federal income taxes?
Multiple choice question. $3, $3, $4, $2,675 - ✔✔a The purpose for using grossed-up pay is to Multiple select question. Avoid voluntary deductions Evade mandated deductions Achieve a predetermined net pay Satisfy tax liabilities - ✔✔Achieve a predetermined net pay Satisfy tax liabilities In 2020, Publication was issued for the sole purpose of income tax calculations. - ✔✔15t Which of the following are more often employer-only taxes? Multiple select question. County income taxes Federal unemployment taxes Federal withholding taxes
Compute the total percentage of mandatory taxes Determine the total of FICA taxes only - ✔✔b The employee completes which form to identify the withholding information for federal income taxes? Multiple choice question. Application W- 4 W- 2 Publication 15 - ✔✔b George had gross wages of $1,000, 401(k) deduction equal to 15% of gross wages and health insurance of $50. George's taxable income is $ - ✔✔ 800 Once the employer has computed the employee's gross pay, the next step is Multiple choice question. to report employee pay to governmental authorities. to deducted mandatory, voluntary, and mandated amounts. to disburse employee pay immediately. - ✔✔b
True or False: The new Form W-4 removes the withholding allowances and focuses on marital status, annual income, and dependents. - ✔✔t To determine taxes to withhold using the ______ ______ method, the payroll clerk may use Publication 15-T. - ✔✔wage bracket Health insurance is an example of a - tax deduction. - ✔✔pre Samantha had gross wages of $1,025, a 401(k) deduction equal to 10% of gross wages and health insurance of $100 per pay period. Samantha's taxable income is $ - ✔✔822. The IRS created an _____ _____ to assist with manual federal income tax computation. - ✔✔excel spreadsheet When would an employee want to have additional taxes withheld by their employer? Multiple select question. When the employee has zero dependents. When the employee would like a smaller return. When the employee has more than one job. When the employee has additional income for which no income tax is withheld. - ✔✔When the employee has more than one job.
No change to tax liability Lower federal income tax Increase tax liability No change to FICA tax liability - ✔✔Lower federal income tax No change to FICA tax liability Under the percentage method, place the items in calculation order - ✔✔gross pay federal tax wages withholdings tiered tax rate Which of the following are NOT determinates of federal withholding taxes on Form W-4 from 2019 or prior years? Multiple select question. Job classification Number of dependents Net pay Marital status - ✔✔Job classification Net pay When using the wage-bracket method the payroll accountant needs to know
Multiple select question. mandatory withholdings. marital status. exemptions. post-tax deductions. - ✔✔marital status. exemptions. The percentage method calculates withholding amounts based upon Multiple choice question. tiered deduction level. Publication 44. tiered income level. wage-bracket calculations. - ✔✔tiered income level. Social Security and Medicare can be higher than federal taxable income because of retirement contributions. - ✔✔t Which of the following are types of taxes employers would match? Multiple select question. Federal Unemployment taxes Medicare taxes Social Security taxes
Multiple choice question. $117, $118, $116. $137,700 - ✔✔d FICA taxes comprise which of the following: Multiple select question. Medicare taxes. federal income tax. Social Security taxes. federal unemployment insurance tax. - ✔✔Medicare taxes. Social Security taxes. The combined maximum Medicare tax rate for an individual earning more than $200,000 annually would be Multiple choice question. 2.35%. 2.95%. 3.8%. 1.8%. - ✔✔a
Social Security taxes were designed to cover people for: Multiple select question. old age disability illness retirement unemployment - ✔✔abcd Highly compensated employees are subject to an additional 0.9% Medicare tax because of the ______ _____Act. - ✔✔affordable care FICA taxes are imposed on _____. Multiple choice question. net pay plus pre-tax deductions gross pay less pre-tax deductions net pay eligible wages - ✔✔eligible wages Employees may be subject to Multiple select question. state unemployment insurance. state privilege taxes.
Multiple select question. State taxes follow similar guidelines as federal taxes. States tax rates may vary by wage levels. Work locations affect the amount of taxes withheld. States may apply a variety of additional taxes. - ✔✔State taxes follow similar guidelines as federal taxes. States tax rates may vary by wage levels. States may apply a variety of additional taxes. The employee earnings record is especially important in computing and tracking the Social Security taxes due for each employee. - ✔✔t An employer must withhold state income taxes when Multiple choice question. Any time an employee works. The state in which they operate has a state income tax. - ✔✔b Information on local (city or county) taxes can be found through Multiple select question. county revenue department. state revenue department. city revenue department.
Internal Revenue Service - ✔✔county revenue department. city revenue department. True or False: Most states have a state income tax. - ✔✔t Post-tax deductions Multiple choice question. reduce employee tax liability. increase employee net pay. increase employee tax liability. reduce employee net pay. - ✔✔reduce employee net pay. Charitable contributions are Multiple choice question. paid by the employee and remitted by the employee. paid by the employer and remitted by the employer. paid by the employer and remitted by the employee. paid by the employee and remitted by the employer. - ✔✔paid by the employee and remitted by the employer. True or false: A company must have a physical address in a state to owe taxes there - ✔✔f
deducted post-tax. - ✔✔reported on the employee's itemized tax return. deducted post-tax. The maximum garnishment for an employee is determined on Multiple choice question. type of income taxes. post-tax income. disposable income. gross income. - ✔✔c Which of the following is correct regarding employer's withholding of state taxes: Multiple choice question. must withhold when their employees live in a different state. must withhold when the employer has post office boxes in a different state. must withhold when the employer has a state employer identification number. the amount must be based on all wages earned within their state. - ✔✔the amount must be based on all wages earned within their state. True or false: Disposable income limits apply to union dues. - ✔✔f
Information on local (city or county) taxes can be found through Multiple select question. county revenue department. state revenue department. Internal Revenue Service. city revenue department. - ✔✔county revenue department. city revenue department. Court ordered garnishments can be for Multiple select question. union dues. child support. student loans. alimony. - ✔✔child support. student loans. alimony. Employee deductions for union dues are considered Multiple choice question. voluntary. mandatory.
Net pay Employee's supervisor Deductions - ✔✔Gross pay Net pay Deductions True or false: A company must use an accounting software when paying employees by check? - ✔✔f The repayment by an employee of an advance is treated as a _____-tax deduction. Multiple choice question. pre non post mandated - ✔✔c Employers issuing paper checks to employees should Multiple select question. use a dedicated payroll account. erase the record of voided checks. maintain an unclaimed property account.
ensure sufficient funds are in the bank account. - ✔✔use a dedicated payroll account. maintain an unclaimed property account. ensure sufficient funds are in the bank account. Which controls would improve accountability in cash payroll systems? Multiple choice question. Ledger entries of the payroll Signed receipts Locking cash box Time cards for employees - ✔✔Signed receipts The ________ may be liable for payroll check fraud until such activity is proven. - ✔✔check issuer Obtaining the employee's _____ and_____ averts problems associated with timely cash payments. - ✔✔signature date Employers may choose to use direct deposit to avoid Multiple choice question. lost paychecks. giving employees pay notification. delaying payroll processing.
